Mumbai, June 23: Arvind Mills, flagship of the Lalbhai group, has recorded an 11.8 per cent rise in net profit at Rs 127 crore for the year ended March 31, 1997, against Rs 113 crore last year. The board has maintained a dividend of Rs 4.50 per share.

Turnover of the company has gone up to Rs 863 crore from Rs 709 crore, an increase of 21 per cent. The earnings per share stood at Rs 12.70 against Rs 11.40 the previous year.

The company has reported a higher gross profit at Rs 202.79 crore against Rs 164.69 crore last year. The company's interest rose to Rs 15.45 crore as compared with Rs 1.64 crore. Depreciation was higher at Rs 57.77 crore against Rs 48.15 crore. Exports increased to Rs 405 crore from Rs 337 crore last year.

The company is setting up two captive co-generation power generation plants at an estimated cost of Rs 1,000 crore. It recently completed an FRN issue of $125 million. Arvind Intex, an associate of Arvind Mills is proposed to be merged to achieve synergies of operations, according to a release issued here on Monday. Two equity shares of Arvind Mills will be alloted for every nine held in Arvind Intex.

Managing director Sanjay Lalbhai said that the improved performance should be viewed in the backdrop of a general decline in corporate performance.

Strategic and operating initatives such as building brands, upgrading product-mix and control on operating costs have improved gross margins, says the release.

Arvind's readymade garment brands - Arrow, Lee, Flying Machine, New Port, Ruf-n-Tuf and the newly introduced Excalibur - have received good market response. The company is the largest company in the readymade garments sector and this position will be further consolidated in the current year, the release adds.

With expansion of denim capacity by 40 million metres, Arvind is now among the top three denim producers in the world with a production capacity of 120 million metres per annum, says the release.

Copyright © 1997 Indian Express Newspapers (Bombay) Ltd.